#binance #hype #zec #near
23/03/26 13:22 UTC-04

Hawkish Fed rhetoric scares investors away from the crypto market

From March 16 to 20, investors allocated $230 million into crypto investment products, significantly lower than in previous weeks, according to a CoinShares report.


Weekly inflows into crypto funds (CoinShares)

Analysts attribute the negative trend to the Federal Reserve’s March 18 meeting, where the regulator kept the key interest rate in the 3.5–3.75% range. Investors interpreted this decision as a “hawkish pause.”

This conclusion is supported by the data: in the first two days, funds attracted $635 million, but after the FOMC meeting they saw $405 million in outflows. By Friday, the outflows had slowed.

Market participants are also remaining cautious due to ongoing military tensions in the Middle East.

Federal Reserve Chair Jerome Powell confirmed that the economic impact of events in Iran remains uncertain. A rally in oil prices caused by supply disruptions in the Strait of Hormuz could drive inflation higher, negatively affecting risk assets.

“However, it is still too early to determine the scale and duration of the potential economic impact,” Powell added.

All regional markets ended the past week with net inflows. CoinShares described the results as “encouraging.” The United States led with $153 million, followed by Germany ($30.2 million) and Switzerland ($27.5 million).


Weekly distribution of capital inflows by region (CoinShares)

Among assets, Bitcoin accounted for the majority of inflows at $219 million. Products allowing short exposure to crypto attracted $6 million. According to analysts, this indicates a “continued divergence of opinions regarding the future prospects” of digital gold.

Solana-based funds saw inflows of $17 million — marking the seventh consecutive week of positive performance. Over this period, total inflows reached $136 million.


Weekly distribution of capital inflows by asset (CoinShares)

“Recently, this asset has been among the most in-demand,” CoinShares noted.

Ethereum-based products recorded outflows of $27.5 million, breaking a three-week streak of inflows.

It is worth noting that from March 9 to 13, crypto investment products saw inflows of $1.06 billion.

See also: "Bloomberg analyst Mike McGlone: “The crypto bubble has burst, gold and silver are now risky assets”"

#Fed #Crypto Market

Editor: Alyona Nabok
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